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Annual Report 2014/15 on the dti's Strategic Goals and Key Achievements

This presentation provides an overview of the dti's strategic goals, key achievements in the 2014/15 fiscal year, and the economic context in which the dti operates. It includes information on the global and domestic economic outlook, investment, trade, and industrial development.

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Annual Report 2014/15 on the dti's Strategic Goals and Key Achievements

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  1. the dtiPresentation on the Annual Report 2014/15 to the Portfolio Committee on Trade and Industry Mr Lionel October Director-General 08 September 2015

  2. Presentation Outline Economic Context Strategic Goals The structure of the dti’s work Annual Performance 2014/15 Key achievements Summary of achievement of targets Financial Management Audit result Report on First Quarter Performance 2015/16 2

  3. Strategic Goals the dti’s strategic goals are: • Facilitate transformation of the economy to promote industrial development, investment, competitiveness and employment creation. • Build mutually beneficial regional and global relations to advance South Africa’s trade, industrial policy and economic development objectives. • Facilitate broad-based economic participation through targeted interventions to achieve more inclusive growth. • Create a fair regulatory environment that enables investment, trade and enterprise development in an equitable and socially responsible manner. • Promote a professional, ethical, dynamic, competitive and customer-focused working environment that ensures effective and efficient service delivery.

  4. ECONOMIC OVERVIEW

  5. Global Economic Context • The global economy grew by a lower than expected 2.2% in Q1 2015. This is substantially lower than the International Monetary Fund’s April 2015 forecast of 3%. • Significantly weaker growth in US, Mexico, Canada, and UK. • Marginally stronger growth in the Eurozone. • Magnitude of slowdown in China disputed but looks substantial. The big story is the plunge in commodity prices.

  6. Global Economic Context

  7. Global Economic Context

  8. Global Economic Context Source: IMF

  9. Domestic Economic Context - GDP • The SA economy contracted by -1.3% in Q2 2015 in quarter-on-quarter terms. (Q1 2015, +1.3%). • In year-on-year terms Q2 2015 growth was 1.2%. • Agriculture contracted by 17.4%, Manufacturing by 6.8%, and Mining by 6.8% • Growth was recorded by Financial Services and Personal Services – by 2.7% and 1.3% respectively.

  10. Domestic Economic Context – GDP

  11. Domestic Economic Context – GDP • The causes of the weaker GDP performance are well known: • Plummeting commodity prices, • Electricity supply challenges, • Global steel glut, • Drought conditions in KZN and North-west, and • Spillover effects from Mining into Manufacturing. • Hard to over-exaggerate impact of the current commodity price shock…

  12. Domestic Economic Context – Investment • Gross Domestic Fixed Investment dipped slightly in 2014 • Latest Foreign Direct Investment (FDI) data show that SA attracted over R140 billion in 2013-14 • SA FDI inflows also slowed in 2014 – as it did at global level • SA’s FDI performance is not unusual given that: • Many multinationals already operate in SA, • We have sophisticated financial markets to raise domestic capital, and • Our FDI stock is already high by international standards (42%).

  13. Domestic Economic Context - Investment

  14. Domestic Economic Context – Trade • Exports grew by 12% in Q2 2015 following a decline of 9.8% in Q1 2015. • A trade surplus of about R9.4 billion has been reported in Q2 2015 – the first time since Q1 2012. • China, US, Japan, Namibia and Botswana remain the top five trading partners in terms of exports.

  15. Domestic Economic Context – Trade SA Quarterly Trade Performance 2010-15 (Current Prices)

  16. The structure of the dti’s work the dti’s work is organised in terms of the following clusters: Industrial development; Trade, Investment and Exports; Broadening participation; Regulation, and Administration and co-ordination 16

  17. Key Achievements1 April 2014 – 31 March 2015 Report on the dtiAnnual Performance 2014/15

  18. Key Achievements Industrial Development 18

  19. Key Achievements Industrial Development 19

  20. Key Achievements Industrial Development 20

  21. Key Achievements Industrial Development 21

  22. Key Achievements Industrial Development 22

  23. Key Achievements Industrial Development 23

  24. Key Achievements Industrial Development 24

  25. Key Achievements Industrial Development 25

  26. Key Achievements Industrial Development 26

  27. Key Achievements Industrial Development 27

  28. Key Achievements Industrial Development 28

  29. Key Achievements Industrial Development 29

  30. Key Achievements Industrial Development 30

  31. Key Achievements Industrial Development 31

  32. Key Achievements Industrial Development 32

  33. Key Achievements Industrial Development 33

  34. MCEP APPROVAL PER PROVINCE 2013/14 & 2014/15 Limpopo which previously (2013/14) had four approvals valued at R7.3 million obtained eight approvals amounting to a remarkable R32.1 million in 2014/15.

  35. Section 12I Tax Allowance Per Province -2014/15 Mpumalanga Province’s single approved project (Air Liquide in Secunda) had the highest projected investment of R2.2 billion followed by Gauteng’s 6 projects with R1.9 billion

  36. 12I Tax Allowance Per Sector - 2014/15 Of the 5 projects in the Metals subsector, 4 were brownfield (2 expansions and 2 upgrades) and one was new; while the 4 Chemicals subsector projects consist of 2 brownfield (all expansions) and 2 new projects.

  37. BBSDP GEOGRAPHICAL DISTRIBUTION: 2014/15 • Decreases in the number of approvals was seen through most of the provinces with the exception of the North West and Northern Cape. • Approvals in the North West increased from 32 (R12 million) in 2013/14 to 68 (R36.3 million) in 2014/15. • The uptake of BBSDP in the Northern Cape improved significantly from 6 (R3.7 million) in 2013/14 to 20 (R7.3 million) in 2014/15. • The three provinces with the highest uptake was Gauteng, KwaZulu-Natal and Limpopo, while the lowest uptake was in theFree State, Northern Cape and Mpumalanga provinces.

  38. CIS PROVINCIAL DISTRIBUTION: 2014/15 • Although the overall number of CIS approvals declined during 2014/15, five provinces, namely KwaZulu-Natal, Limpopo, Mpumalanga, North West and Western Cape, showed an improvement in the number of supported co-operatives. • The most significant improvement was in the Mpumalanga province with an increase from 6 (R1.6 million) in 2013/14 to 24 (R7.2 million) in 2014/15 • The Northern Cape province had no approved co-operatives during 2014/15, while the highest uptake was in the Eastern Cape and Gauteng.

  39. EIPPROVINCIAL PERFORMANCE (2014/15)

  40. Trade, Investment and Exports

  41. Trade, Investment and Exports

  42. Trade, Investment and Exports

  43. Broadening Participation

  44. Broadening Participation

  45. Broadening Participation

  46. Regulation

  47. Regulation

  48. Administration

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